CHARLOTTE, N.C.--(BUSINESS WIRE)--Dec. 13, 2018--
Level Brands, Inc. (NYSE American: LEVB), an innovative brand management
and licensing company that provides bold, unconventional, and socially
responsible branding for leading businesses, today announced financial
and operating results for its fiscal year ended September 30, 2018.

FINANCIAL HIGHLIGHTS:

Total net sales increased 88% to $8.4 million for the fiscal year
ended September 30, 2018 from fiscal 2017.

Gross profit as a percentage of net sales was 68.2% for the fiscal
year ended September 30, 2018.

Net loss attributable to common shareholders improved 76% to a loss of
$412,075 in the fiscal year ended September 30, 2018, up from a loss
of $1,738,734 in fiscal 2017. Included in net loss of $412,075 was
non-cash expense of $1,969,433.

Working capital of $10.8 million at September 30, 2018, compared to
working capital of $2.2 million at September 30, 2017; subsequent to
the fiscal year end, the Company completed a secondary offering in
October 2018 issuing 1.9 million shares for net proceeds of $6.3
million.

No long-term debt.

“We are pleased to report strong, double-digit year-over-year growth,”
stated Martin A. Sumichrast, Chairman and CEO of Level Brands. “Our
licensing division was a major driver of this year’s growth, with two
significant agreements generating approximately $5.1 million. We
continue to work to leverage our relationship with Kathy Ireland, which
allows us access to virtually unlimited products which can meet the
demands of our targeted customers. Our relationships encompass products
in fashion, accessories, beverages, personal care, health care, and
spirits, which are already in development or available at brick and
mortar stores and online retailers.”

“We also expect that the addition of our recently announced pending
acquisition of the nationally recognized CBD consumer products brand
cbdMD will add significant scale to our overall business. With the
capital we have available, we are confident that we can significantly
accelerate the revenue growth of cbdMD in 2019 and beyond. We believe
that the next three to five years will produce a few leading CBD brands,
and our goal is for cbdMD to be the leader in this emerging space. cbdMD
products can be purchased online or through over 700 retailers in 40
states. In the event we complete the merger, we believe cbdMD opens the
door to a wide potential of vertical growth opportunities,” added
Sumichrast.

The closing of the merger is subject to customary conditions, as well
the passage of the 2018 Farm Bill. The Merger Agreement provides for
merger consideration of 15,250,000 shares of Level Brands' common stock
and also provides for additional issuance of common stock, as part of
the merger consideration, upon satisfaction of aggregate revenue goals
up to $300 million within 60 months following the closing. Following the
expected closing of the merger, cbdMD will operate as a wholly-owned
subsidiary of Level Brands. cbdMD’s executive team will continue in
similar roles at the subsidiary. The CEO of cbdMD brings a wealth of
great experience. He founded the ecig company Blu in 2009, which he
built into one of the leading brands globally before selling it to
Lorillard Tobacco in 2012.

Level Brands is an innovative brand management and licensing company
that provides bold, unconventional, and socially responsible branding
for leading businesses. The focus of LEVB is licensing and corporate
brand management for consumer products, including art, beauty, fashion,
the beverage space, health and wellness, and entertainment. License
brand marketing is at the core of the Level Brands businesses: kathy
ireland® Health & Wellness; Ireland Men One (I’M1), a men’s
lifestyle brand established to capitalize on potentially lucrative
licensing and co-branding opportunities with brands focused on
millennials; Encore Endeavor One (EE1), a provider of corporate
brand-management services and producer of experiential entertainment
events and products across multiple platforms.

Forward-Looking Statements

This press release contains certain forward-looking statements that are
based upon current expectations and involve certain risks and
uncertainties within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. Such forward-looking statements can be
identified by the use of words such as ''should,'' ''may,'' ''intends,''
''anticipates,'' ''believes,'' ''estimates,'' ''projects,''
''forecasts,'' ''expects,'' ''plans,'' and ''proposes.'' These
forward-looking statements are not guarantees of future performance and
are subject to risks, uncertainties, and other factors, some of which
are beyond our control and difficult to predict and could cause actual
results to differ materially from those expressed or forecasted in the
forward-looking statements, including, without limitation, statements
made with respect to our material dependence on our relationship with
kathy ireland® Worldwide, our limited operating history, our ability to
expand our business and significantly increase our revenues and our
ability to report profitable operations in future periods, the closing
of the pending merger transaction and, if the transaction closes, the
approval by NYSE American of the continued listing of our common stock
and the perceived market opportunity for Level Brands, among others. You
are urged to carefully review and consider any cautionary statements and
other disclosures, including the statements made under the heading "Risk
Factors" in Level Brands, Inc.'s Annual Report on Form 10-K for the
fiscal year ended September 30, 2018 as filed with the Securities and
Exchange Commission (the "SEC") on December 12, 2018 and our other
filings with the SEC. All forward-looking statements involve significant
risks and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements, many of which
are generally outside the control of Level Brands, Inc. and are
difficult to predict. Level Brands, Inc. does not undertake any duty to
update any forward-looking statements except as may be required by law.